---- z. via personal delivery received...19·-0026 october z. q , 2019 via personal delivery...

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19·-0026

October Z. q , 2019

VIA PERSONAL DELIVERY RECEIVED Hon. Xavier Becerra OCT 2 9 2019 Attorney General of California 1300 I Street, 17th Floor

INITIATIVE COORDINATOR Sacramento, CA 95 814 ATTORNEY GENERAL'S OFFICE

Attention: Ms. Anabel Renteria, Initiative Coordinator

Re: Request for Title and Summary for Proposed Initiative Statute

Dear Ms. Renteria:

Pursuant to Article II, Section 10( d) of the California Constitution, we hereby submit the attached proposed Initiative Statute to your office and request preparation of a circulating title and summary of the chief points and purposes of the measure as provided by law. Included with this submission are the required proponents' affidavits signed by the proponents of this measure pursuant to Sections 9001 and 9608 of the California Elections Code. Our addresses as registered voters is attached to this letter, along with a check for $2,000.00.

All inquires or correspondence relative to this initiative should be directed to:

Kurt R. Oneto Nielsen Merksamer LLP 1415 L Street, Suite 1200 Sacramento, CA 95814

(916) 446-6752

Sincerely,

Davis White, Proponent Brian McGuigan, Prnponent Keith Yandell, Proponent

Davis White

https://2,000.00

October 1. q , 2019

VIA PERSONAL DELIVERY

Hon. Xavier Becerra Attorney General of California 1300 I Street, 17th Floor Sacramento, CA 95814



Dear Ms. Renteria:

Pursuant to Article II, Section lO(d) of the California Constitution, we hereby submit the attached proposed Initiative Statute to your office and request preparation of a circulating title and summary of the chief points and purposes of the measure as provided by law. Included with this submission are the required proponents' affidavits signed by the proponents of this measure pursuant to Sections 9001 and 9608 of the California Elections Code. Our addresses as registered voters is attached to this letter, along with a check for $2,000.00.



(916) 446-6752

Sincerely,

Davis White, Proponent Brian McGuigan, Proponent Keith Yandell, Proponent

By: ~ii_j~OJv_()\tt:-----1-B · +---McG-uigan--

https://2,000.00

-----October 1- q , 2019

VIA PERSONAL DELIVERY

Hon. Xavier Becerra Attorney General of California 1300 I Street, 17th Floor Sacramento, CA 95814



Dear Ms. Renteria:

Pursuant to Article II, Section l0(d) of the California Constitution, we hereby submit the attached proposed Initiative Statute to your office and request preparation of a circulating title and summary of the chief points and purposes of the measure as provided by law. Included with this submission are the required proponents' affidavits signed by the proponents of this measure pursuant to Sections 9001 and 9608 of the California Elections Code. Our addresses as registered voters is attached to this letter, along with a check for $2,000.00.



(916) 446-6752

Sincerely,

Davis White, Proponent Brian McGuigan, Proponent Keith Yandell, Proponent

https://2,000.00

Section 1. Chapter 10.5 (commencing with Section 7448) is added to Division 3 of the

Business and Professions Code, to read:

CHAPTER 10.5. APP-BASED DRIVERS AND SERVICES.

ARTICLE 1. Title, Findings and Declarations, and Statement of Purpose.

7448. Title. This chapter shall be known, and may be cited as, the Protect App-Based

Drivers and Services Act.

7 449. Findings and Declarations. The People of the State of California find and declare

as follows:

( a) Hundreds of thousands of Californians are choosing to work as independent

contractors in the modern economy using app-based rideshare and delivery platforms to transport

passengers and deliver food, groceries, and other goods as a means of earning income while

maintaining the flexibility to decide when, where, and how they work.

(b) These app-based rideshare and delivery drivers include parents who want to work

flexible schedules while children are in school; students who want to earn money in between

classes; retirees who rideshare or deliver a few hours a week to supplement fixed incomes and

for social interaction; military spouses and partners who frequently relocate; and families

struggling with California's high cost ofliving that need to earn extra income.

(c) Millions of California consumers and businesses, and our state's economy as a whole,

also benefit from the services of people who work as independent contractors using app-based

rideshare and delivery platfonns. App-based rideshare and deli very drivers are providing

convenient and affordable transportation for the public, reducing impaired and drunk driving,

improving mobility for seniors and individuals with disabilities, providing new transportation

options for families who cannot afford a vehicle, and providing new affordable and convenient

delivery options for grocery stores, restaurants, retailers and other local businesses and their

patrons.

( d) However, recent legislation has threatened to take away the flexible work

opportunities of hundreds of thousands of Californians, potentially forcing them into set shifts

1

and mandatory hours, taking away their ability to make their own decisions about the jobs they

take and the hours they work.

( e) Protecting the ability of Californians to work as independent contractors using app

based rideshare and delivery platfonns is necessary so people can continue to choose which jobs

they take, to work as often or as little as they like, and to work with multiple platfonns or

companies-all the while preserving access to app-based rideshare and delivery services that are

beneficial to consumers, small businesses, and the California economy .

. (f) App-based rideshare and delivery drivers deserve economic security. This chapter is

necessary to protect their freedom to work independently, while also providing these workers

new benefits and protections not available under ctment law. These benefits and protections

include a healthcare subsidy consistent with the average contributions required under the

Affordable Care Act (ACA); a new minimum earnings guarantee tied to one hundred twenty

percent (120%) of minimum wage with no maximum; compensation for vehicle expenses;

occupational accident insurance to cover on-the-job injuries; and protection against

discrimination and sexual harassment.

(g) California law and rideshare and delivery network companies should protect the

safety of both drivers and consumers without affecting the right of app-based rides hare and

delivery drivers to work as independent contractors. Such protections should, at a minimum,

include criminal background checks of drivers; zero tolerance policies for drug- and alcohol

related offenses; and driver safety training.

7450. Statement of Purpose. The purposes of this chapter are as follows:

( a) To protect the basic legal right of Californians to choose to work as independent

contractors with rideshare and delivery network companies.

(b) To protect the individual right of every app-based rideshare and delivery driver to

have the flexibility to set their own hours for when, where, and how they work.

(c) To require rideshare and delivery network companies to offer new protections and

benefits for app-based rideshare and delivery drivers, including minimum compensation levels,

insurance to cover on-the-job injuries, automobile accident insurance, healthcare subsidies for

qualifying drivers, protection against harassment and discrimination, and mandatory contractual

rights and appeal processes.

2

( d) To improve public safety by requiring criminal background checks, driver safety

training, and other safety provisions to help ensure app-based rideshare and delivery drivers do

not pose a threat to customers or the public.

ARTICLE 2. App-Based Driver Independence.

7451. Protecting Independence. Notwithstanding any other provision of law, including

but not limited to the Labor Code, the Unemployment Insurance Code, any orders, regulations,

or opinions of the Department oflndustrial Relations or any board, division, or commission

within the Department oflndustrial Relations, an app-based driver is an independent contractor

and not an employee or agent with respect to his or her relationship with a network company if

the following conditions are met:

(a) The network company does not 1milaterally prescribe specific dates, times of day, or a

minimum number of hours during which the app-based driver must be logged into the network

company's online-enabled application or platform.

(b) The network company does not require the app-based driver to accept any specific

rideshare service or delivery service request as a condition of maintaining access to the network

company's online-enabled application or platfonn.

(c) The network company does not restrict the app-based driver from perfonning

rideshare services or delivery services through other network companies except during engaged

time.

(d) The network company does not restrict the app-based driver from working in any

other lawful occupation or business.

7452. Contract and Termination Provisions. (a) A network company and an app-based

driver shall enter into a written agreement prior to the driver receiving access to the network

company's online-enabled application or platform.

(b) A network company shall not terminate a contract with an app-based driver unless

based upon a ground specified in the contract.

(c) A network company shall provide an appeals process for app-based drivers whose

contracts are tenninated by the network company.

3

7452.5. Independence Unaffected. Nothing in Article 3 through Article 10 of this chapter

shall be interpreted to in any way alter the relationship between a network company and an app

based driver for whmnthe conditions set forth in Section 7451 are satisfied.

ARTICLE 3. Compensation.

7453. Earnings Guarantee. (a) A network company shall ensure that for each earnings

period, an app-based driver is compensated at not less than the net earnings floor as set forth in

this section. The net earnings floor establishes a guaranteed minimum level of compensation for

app-based drivers that cannot be reduced. In no way does the net earnings floor prohibit app

based drivers from earning a higher level of compensation.

(b) For each earnings period, a network company shall compare an app-based driver's net

earnings against the net earnings floor for that app-based driver dming the earnings period. In

the event that the app-based driver's net earnings in the earnings period are less than the net

earnings floor for that earnings period, the network company shall include an additional sum in

the app-based driver's earnings no later than during the next earnings period accounting for the

difference.

(c) No network company or agent shall take, receive, or retain any gratuity or a part

thereof that is paid, given to, or left for an app-based driver by a customer, or deduct any amount

from the earnings due to an app-based driver for a ride or delivery on account of a gratuity paid

in connection with the ride or delivery. A network company that permits customers to pay

gratuities by credit card shall pay the app-based driver the full amount of the gratuity that the

customer indicated on the credit card receipt, without any deductions for any credit card payment

processing fees or costs that may be charged to the network company by the credit card

company.

(d) For purposes of this chapter, the following definitions apply:

(1) "Applicable minimum wage" means the state mandated minimum wage for all

industries or, if a passenger or item is picked up within the boundaries of a local government that

has a higher minimum wage that is generally applicable to all industries, the local minimum

wage of that local government. The applicable minimum wage shall be detennined at the

4

location where a passenger or item is picked up and shall apply for all engaged time spent

completing that rideshare request or delivery request.

(2) "Earnings period" means a pay period, set by the network company, not to exceed 14

consecutive calendar days.

(3) "Net earnings" means all earnings received by an app-based driver in an earnings

period, provided that the amount confonns to both of the following standards:

(A) The amount does not include gratuities, tolls, cleaning fees, airport fees, or other

customer pass:..throughs.

(B) The amount may include incentives or other bonuses.

(4) "Net earnings floor" means, for any earnings period, a total amount that is comprised

of:

(A) For all engaged time, the sum of one hundred twenty percent (120%) of the

applicable minimum wage for that engaged time.

(B)(i) The per-mile compensation for vehicle expenses set fmih in this subpara6rraph

multiplied by the total number of engaged miles.

(ii) After the effective date of this chapter a11d for the 2021 calendar year, the per-mile

compensation for vehicle expenses shall be thirty cents ($0.30) per engaged mile. For calendar

years after 2021, the amount per engaged mile shall be adjusted pursuant to clause (iii).

(iii) For calendar years following 2021, the per-mile compensation for vehicle expenses

described in clause (ii) shall be adjusted annually to reflect any increase in inflation as measured

by the Consumer Price Index for All Urban Consumers (CPI-U) published by the United States

Bureau of Labor Statistics. The Treasurer's Office shall calculate and publish the adjustments

required by this subparagraph.

(e) Nothing in this section shall be interpreted to require a network company to provide a

particular amount of compensation to an app-based driver for any given rideshare or delivery

request, as long as the app-based driver's net earnings for each earnings period equals or exceeds

that app-based driver's net earnings floor for that earnings period as set forth in subdivision (b ).

For clarity, the net earnings floor in this section may be calculated on an average basis over the

course of each earnings period.

5

ARTICLE 4. Benefits.

7454. Healthcare Subsidy. (a) Consistent with the average contributions required under

the Affordable Care Act (ACA), a network company shall provide a quarterly healthcare subsidy

to qualifying app-based drivers as set forth in this section. An app-based driver that averages the

following amounts of engaged time per week on a network company's platfonn during a

calendar quarter shall receive the following subsidies from that network company:

(1) For an average of25 hours or more per week of engaged time in the calendar quarter,

a payment greater than or equal to one hundred percent (100%) of the average ACA contribution

for the applicable average monthly Covered California premium for each month in the quarter.

(2) For an average of at least 15 but less than 25 hours per week of engaged time in the

calendar quarter, a payment greater than or equal to fifty percent (50%) of the average ACA

contribution for the applicable average monthly Covered California premium for each month in

the quarter.

(b) At the end of each earnings period, a network company shall provide to each app

based driver the following infonnation:

(1) The number of hours of engaged time the app-based driver accrued on the network

company's online-enabled application or platform during that earnings period.

(2) The mm1ber of hours of engaged time the app-based driver has accrued on the

network company's platfom1 during the current calendar quarter up to that point.

(c) Covered California may adopt or amend regulations as it deems appropriate to pennit

app-based drivers receiving subsidies pursuant to this section to enroll in health plans through

Covered California.

(d)(l) As a condition of providing the healthcare subsidy set forth in subdivision (a), a

network company may require an app-based driver to submit proof of current enrollment in a

qualifying health plan. Proof of current enrollment may include, but is not limited to, health

insurance membership or identification cards, evidence of coverage and disclosure fonns from

the health plan, or claim forms and other documents necessary to submit claims.

(2) An app-based driver shall have not less than 15 days from the end of the calendar

quarter to provide proof of enrollment as set forth in paragraph (1).

6

(3) A network company shall provide a healthcare subsidy due for a calendar quarter

under subdivision (a) within 15 days of the end of the calendar quarter or within 15 days of the

app-based driver's submission of proof enrollment as set forth in paragraph (1 ), whichever is

later.

(e) For purposes of this section, a calendar quarter refers to the following four periods of

time:

( 1) January 1 through March 31.

(2) April 1 through June 30.

(3) July 1 through September 30.

( 4) October 1 through December 31.

( f) Nothing in this section shall be interpreted to prevent an app-based driver from

receiving a healthcare subsidy from more than one network company for the same calendar

quarter.

(g) On or before December 31, 2020, and on or before each September 1 thereafter,

Covered California shall publish the average statewide monthly premium for an individual for

the following calendar year for a Covered California bronze health insurance plan.

(h) This section shall become inoperative in the event the United States or the State of

California implements a universal healthcare system or substantially similar system that expands

health coverage to the recipients of subsidies under this section.

7455. Loss and Liability Protection. No network company shall operate in California for

more than ninety (90) days unless the network company carries, provides, or otherwise makes

available the following insurance coverage:

(a) For the benefit of app-based drivers, occupational accident insurance to cover medical

expenses and lost income resulting from injuries suffered while the app-based driver is online

with a network company's online-enabled application or platform. Policies shall at a minimum

provide the following:

(1) Coverage for medical expenses incurred, up to at least one million dollars

($1,000,000).

(2)(A) Disability payments equal to sixty-six percent (66%) of the app-based driver's

average weekly earnings from all network companies as of the date of injury, with minimum and

7

maximum weekly payment rates to be detennined in accordance with subdivision (a) of Section

4453 of the Labor Code for up to the first 104 weeks following the injury.

(B) "Average weekly earnings" means the app-based driver's total earnings from all

network companies during the twenty-eight (28) days prior to the covered accident divided by

four.

(b) For the benefit of spouses, children, or other dependents of app-based dtivers,

accidental death insurance for injuries suffered by an app-based driver while the app-based

driver is online with the network company's online-enabled application or platfonn that result in

death. For purposes of this subdivision, burial expenses and death benefits shall be detennined

in accordance with Section 4701 and Section 4702 of the Labor Code.

(c) For the purposes of this section, "online" means the time when an app-based driver is

utilizing a network company's online-enabled application or platforn1 and can receive requests

for rideshare services or delivery services from the network company, or during engaged time.

(d) Occupational accident insurance under subdivision (a) and (b) shall not be required to

cover an accident that occurs while online but outside of engaged time where the injured app

based driver is in engaged time on one or more other network company platfonns or where the

app-based driver is engaged in personal activities. If an accident is covered by occupational

accident insurance maintained by more than one network company, the insurer of the network

company against whom a claim is filed is entitled to contribution for the pro-rata share of

coverage attributable to one or more other network companies up to the coverages and limits in

subdivision (a) and (b ).

(e) Any benefits provided to an app-based driver under subdivision (a) or subdivision (b)

of this section shall be considered amounts payable under a worker's compensation law or

disability benefit for the pm1)ose of detem1ining amounts payable under any insurance provided

under California's Uninsured Motorist Act (commencing with Section 11580 of the Insurance

Code).

(f)(l) For the benefit of the public, a DNC shall maintain automobile liability insurance

of at least one million dollars ($1,000,000) per occu1Tence to compensate third parties for injuries

or losses proximately caused by the operation of an automobile by an app-based driver during

engaged time in instances where the automobile is not otherwise covered by a policy that

complies with subdivision (b) of Section 11580. l of the Insurance Code.

8

(2) For the benefit of the public, a TNC shall maintain liability insurance policies as

required by Article 7 (commencing with Section 5430) of Division 2 of the Public Utilities Code.

ARTICLE 5. Anti-Discrimination and Public Safety.

7456. Anti-Discrimination. (a) It is an unlawful practice, unless based upon a bona fide

occupational qualification or public or app-based driver safety need, for a network company to

refuse to contract with, terminate the contract of, or deactivate from the network company's

online-enabled application or platfonn, any app-based driver or prospective app-based driver

based upon race, color, ancestry, national origin, religion, creed, age, physical or mental

disability, sex, gender, sexual orientation, gender identity or expression, medical ·condition,

genetic information, marital status, or military or veteran status.

(b) Claims brought pursuant to this section shall be brought solely under the procedures

established by the Unruh Civil Rights Act (Section 51 of the Civil Code) and will be governed

by its requirements and remedies.

7457. Sexual Harassment Prevention. (a) A network company shall develop a sexual

harassment policy intended to protect app-based drivers and members of the public using

rideshare services or delivery services. The policy shall be available on the network company's

website. The policy shall, at a minimum, do all of the following:

( 1) Identify behaviors that may constitute sexual harassment, including the following:

unwanted sexual advances; leering, gestures, or displaying sexually suggestive objects, pictures,

calioons, or posters; derogatory comments, epithets, slurs, or jokes; graphic comments, sexually

degrading words, or suggestive or obscene messages or invitations; and physical touching or

assault, as well as impeding or blocking movements.

(2) Indicate that the network company, and in many instances the law, prohibits app

based drivers and customers utilizing rideshare services or delivery services from committing

prohibited harassment

(3) Establish a process for app-based drivers, customers, and ridesharc passengers to

submit complaints that ensures confidentiality to the extent possible; an impartial and timely

investigation; and remedial actions and resolutions based on the information collected during the

investigation process.

9

( 4) Provide an opportunity for app-based drivers and customers utilizing rideshare

services or delivery services to submit complaints electronically so complaints can be resolved

quickly.

· (5) Indicate that when the network company receives allegations of misconduct, it will

conduct a fair, timely, and thorough investigation to reach reasonable conclusions based on the

infonnation collected.

(6) Make clear that neither app-based drivers nor customers utilizing rideshare services or

delivery services shall be retaliated against as a result of making a good faith complaint or

participating in an investigation against another app-based driver, customer, or rideshare

passenger.

(b) Prior to providing rideshare services or delivery services through a network

company's online-enabled application or platform, an app-based driver shall do both of the

following:

(1) Review the network company's sexual harassment policy.

(2) Confinn to the network company, for which electronic confinnation shall suffice, that

he or she has reviewed the network company's sexual harassment policy.

(c) Claims brought pursuant to this section shall be brought solely under the procedures

established by the Unruh Civil Rights Act (Section 51 of the Civil Code) and will be governed

by its requirements and remedies.

7458. Criminal Background Checks. (a) A network company shall conduct, or have a

third party conduct, an initial local and national criminal background check for each app-based

driver who uses the network company's online-enabled application or platform to provide

rideshare services or delivery services. The background check shall be consistent with the

standards contained in subdivision (a) of Section 5445.2 of the Public Utilities Code.

Notwithstanding any other provision oflaw to the contrary, after an app-based driver's consent is

obtained by a network company for an initial background check, no additional consent shall be

required for the continual monitoring of that app-based driver's criminal history if the network

company elects to undertake such continual monitoring.

(b) A network company shall complete the initial criminal background check as required

by subdivision ( a) prior to permitting an app-based driver to utilize the network company's

10

online-enabled application or platfo1m. The network company shall provide physical or

electronic copies or summaries of the initial criminal background check to the app-based driver.

(c) An app-based driver shall not be pennitted to utilize a network conipany's online

enabled application or platfonn if the driver has been convicted of any crime listed in

subparagraph (B) of paragraph (2) of subdivisjon (a) of Section 5445.2 of the Public Utilities

Code.

7459. Safety Training. (a) A network company shall require an app-based driver to

complete the training described in this section prior to allowing the app-based driver to utilize

the network company's online-enabled application or platform.

(b) A network company shall provide each app-based driver safety training. The safety

trainhig required by this section shall include the following subjects:

(1) Collision avoidance and defensive driving techniques.

(2) Identification of collision-causing elements such as excessive speed, DUI, and

distracted driving.

(3) Recognition and reporting of sexual assault and misconduct.

( 4) For app-based drivers delivering prepared food or groceries, food safety information

relevant to the delivery of food, including temperature control.

(c) The training may, at the discretion of the network company, be provided via online,

video, or in-person training.

(d) Notwithstanding subdivision (a), any app-based driver that has entered into a contract

with a network company prior to January 1, 2021 to provide rideshare services or delivery

services shall have until July 1, 2021 to complete the safety training required by this section, and

may continue to provide rideshare services or delivery services through the network company's

online-enabled application or platfonn until that date. On and after July 1, 2021, app-based

drivers described in this subdivision must complete the training required by this section in order

to continue providing rideshare services or delivery services.

( e) Any safety product, feature, process, policy, standard or other effort undertaken by a

network company, or the provision of equipment by a network company, to fmther public safety

is not an indicia of an employment or agency relationship with an app~based driver.

7460. Zero Tolerance Policies. (a) A network company shall institute a ''zero tolerance

policy" that mandates prompt suspension of an app-based driver's access to the network

11

company's online-enabled application or platfom1 in any instance in which the network company

receives a report through its online-enabled application or platform, or by any other company

approved method, from any person who reasonably suspects the app-based driver is under the

influence of drugs or alcohol while providing rideshare services or delivery services.

(b) Upon receiving a rep01i described in subdivision (a), a network company shall

promptly suspend the app-based driver from the company's online-enablcd application or

platform for further investigation.

7461. App-based Driver Rest. An app-based driver shall not be logged in and driving on

a network company's online-enabled application or platfom1 for more than a cumulative total of

12 hours in any 24-hour period, unless that driver has already logged off for an uninterrupted

· period of 6 hours. If an app-based driver has been logged on and driving for more tl1an a

cumulative total of 12 hours in any 24-hour period, without logging off for an uninterrupted

period of 6 hours, the driver shall be prohibited from logging back into the network company's

online-enabled application or platfon11 for an uninterrupted period of at least 6 hours.

7462. Impersonating an App-Based Driver. In addition to other penalties provided by

law, every person who falsely impersonates an app-based driver providing rideshare services or

delivery services shall be guilty of a misdemeanor, and is punishable by imprisonment in a

county jail for up to three months, or a fine of up to ten thousand dollars ($10,000), or both.

ARTICLE 6. Definitions.

7463. For purposes of this chapter, the following definitions shall apply:

(a) "App-based driver" means a DNC courier or TNC driver for whom the conditions set

forth in subdivision (a) through subdivision (d) of Section 7451 are satisfied.

(b) "Average ACA contribution" means eighty-two percent (82%) of the dollar amount of

the average monthly Covered California premium.

(c) "Average monthly Covered California premium" equals tl1e dollar amount published

pursuant to subdivision (g) of Section 7454.

(d) "Covered California" means the California Health Benefit Exchange, codified at Title

22 (commencing with Section 100500) of the Government Code.

(e) "Customer" means one or more natural persons or business entities.

12

(f) "Delivery network company" ("DNC'') means a business entity that maintains an

online-enabled application or platform used to facilitate delivery services within the State of

California on an on-demand basis. Deliveries are facilitated on an on-demand basis if DNC

couriers are provided with the option to accept or decline each delivery request and the DNC

does not require the DNC courier to accept any specific delivery request as a condition of

maintaining access to the DNC's online-enabled application or platfonn.

(g) "Delivery network company courier" ("DNC courier") means an individual who

provides delivery services through a DNC's online-enabled application or platfonn.

(h) "Delivery service(s)" means the fulfillment of a delivery request, meaning the pickup

from any location of any item or items and the delivery of the item(s) using a passenger vehicle,

bicycle, scooter, walking, public transportation, or other similar means of transportation, to a

location selected by the customer located within fifty (50) miles of the pickup location. A

delivery request may include more than one, but not more than twelve (12), distinct orders.

placed by different customers. Delivery services may include the selection, collection, or

purchase of item( s) by a. DNC courier provided that those tasks are done in connection with a

delivery that the DNC courier has agreed to deliver.

(i) "Engaged miles" means all miles driven during engaged time in a passenger vehicle

that is not owned, leased, or rented by the network company.

(j)(l) "Engaged time" means, subject to the conditions set forth in paragraph (2), the

period of time, as recorded in a network company's on.line-enabled application or platform, from

when an app-based driver accepts a rideshare request or delivery request to when the app-based

driver completes that rideshare request or delivery request.

(2) Engaged time shall not include (A) any time spent perfonning a rideshare service or

delivery service after the request has been cancelled by the customer; or (B) any time spent on a

rideshare service or delivery service where the app-based driver abandons performance of the

service prior to completion. Network companies may also exclude time if doing so is reasonably

necessary to remedy or prevent fraudulent use of the network company's online-enabled

application or platfonn.

(k) "Local government" means a city, county, city and county, charter city, or charter

county.

(1) "Network company" means a business entity that is a DNC and/or a TNC.

13

(m) "Passenger vehicle" means a passenger vehicle as defined in Section 465 of the

Vehicle Code.

(n) "Qualifying health plan" means a health insurance plan in which the app-based driver

is the subscriber, that is not sponsored by an employer, and that is not a Medicare or Medicaid

plan.

( o) "Rides hare service( s )" means the transportation of one or more persons.

(p) "Transportation network company" ("TNC") has the same meaning as the definition

contained in subdivision ( c) of Section 5431 of the Public Utilities Code.

(q) "Transportation network company driver" ("TNC driver") has the same meaning as

the definition of "driver" contained in subdivision (a) of Section 5431 of the Public Utilities

Code.

ARTICLE 7. Unifonn Work Standards.

7464. (a) The performance of a single rideshare service or delivery service frequently

requires an app-based driver to travel across the jurisdictional boundaries of niultiple local

governments. California has over 500 cities and counties, which can lead to overlapping,

inconsistent, and contradictory local regulations for cross-jurisdictional services.

(b) In light of the cross-jmisdictional nature ofridesharc services and delivery services,

and in addition to the other requirements and standards established by this chapter, the State

hereby occupies the field in the following areas:

(1) App-based driver compensation and gratuity, except as provided in Section 7453.

(2) App-based driver scheduling; leave; healthcare subsidies and any other work-related

stipends, subsidies, or benefits.

(3) App-based driver licensing and insurance requirements.

( 4) App-based driver rights with respect to a network company's termination of an app

based driver's contract.

( c) Notwithstanding sub di vision (b ), nothing in this section shall limit a local

government's ability to adopt local ordinances necessary to punish the commission of

misdemeanor and felony crimes or to enforce local ordinances and regulations enacted prior to

October 29, 2019.

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ARTICLE 8. Amendment.

7465. (a) After the effective date of this chapter, the Legislature may amend this chapter

by a statute passed in each house of the Legislature by rollcall vote entered into the journal,

seven-eighths of the membership concurring, provided that the statute is consistent with, and

furthers the purpose of, this chapter. No bill seeking to amend this chapter after the effective date

of this chapter may be passed or ultimately become a statute unless the bill has been printed and

distributed to members, and published on the Internet, in its final form, for at least 12 business

days prior to its passage in either house of the Legislature.

(b) No statute enacted after October 29, 2019, but prior to the effective date of this

chapter, that would constitute an amendment of this chapter, shall be operative after the effective

date of this chapter unless the statute was passed in accordance with the requirements of

subdivision (a).

(c)(l) The purposes of this chapter are described in Article 1.

(2) Any statute that amends Section 7451 does not fmiher the purposes of this chapter.

(3) Any statute that authorizes any entity or organization to represent the interests of app-

based drivers in connection with drivers' contractual relationships with network cdmpanies, or

drivers' compensation, benefits, or working conditions, constitutes an amendment of this chapter

and must be enacted in compliance with the procedures governing amendments consistent with

the purposes of this chapter as set forth in subdivision (a) and subdivision (b) of this section.

(d) Any statute that imposes additional misdemeanor or felony penalties in order to

provide greater protection against criminal activity for app-based drivers and individuals using

rideshare services or delivery services may be enacted by the Legislature by rollcall vote entered

into the journal, a majority of the membership of each house c011curring, without complying with

subdivision (a) and subdivision (b) of this section.

ARTICLE 9. Regulations.

7466. (a) Emergency regulations may be adopted by Covered California in order to

implement ai1d administer subdivision ( c) and subdivision (g) of Section 7454.

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(b) Any emergency regulation adopted pursuant to this section shall be adopted in

accordance with Chapter 3.5 (commencing with Section 11340) of Pa1i 1 of Division 3 of Title 2

of the Govermnent Code, and, for purposes of that chapter, including Section 11349 .6 of the

Government Code, the adoption of the regulation is an emergency and shall be considered by the

Office of Administrative Law as necessary for the immediate preservation of the public peace,

health and safety, and general welfare. Notwithstanding any other provision oflaw, the

emergency regulations adopted by Covered California may remain in effect for two years from

the date of adoption.

ARTICLE 10. Severability.

7467. (a) Subject to subdivision (b) of this section, the provisions of this chapter are

severable. If any portion, section, subdivision, paragraph, clause, sentence, phrase, word, or

application of this chapter is for any reason held to be invalid by a decision of any court of

competent jurisdiction, that decision shall not affect the validity of the remaining po11ions of this

chapter. The People of the State of California hereby declare that they would have adopted this

chapter and each and every portion, section, subdivision, paragraph, clause, sentence, phrase,

word, and application not declared invalid or unconstitutional without regard to whether any

other portion of this chapter or application thereof would be subsequently declared invalid.

(b) Notwithstanding subdivision (a), if any portion, section, subdivision, paragraph,

clause, sentence, phrase, word, or application of Section 7451 of Article 2 of this chapter, as

added by the voters, is for any reason held to be invalid by a decision of any comi of competent

jurisdiction, that decision shall apply to the entirety of the remaining provisions of this chapter,

and no provision of this chapter shall be deemed valid or given force oflaw.

Section 2. Conflicting Measures.

(a) In the event that this initiative measure and another ballot measure or measures

dealing, either directly or indirectly, with the worker classification, compensation, or benefits of

app-based drivers shall appear on the same statewide election ballot, the other ballot measure or

measures shall be deemed to be in conflict with this measure. In the event that this initiative

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measure receives a bireater number of affinnative votes, the provisions of this measure shall

prevail in their entirety, and the provisions of the other ballot measure or measures shall be null

and void.

(b) If this initiative measure is approved by the voters but superseded in whole or in part

by any other conflicting ballo~ measure approved by the voters at the same election, and such

conflicting measure is later held invalid, this measure shall be self-executing and given full force

and effect.

Section 3. Legal Defense.

The purpose of this section is to ensure that the people's precious right of initiative

cannot be improperly annulled by state politicians who refuse to defend the will of the voters.

Therefore, if this Act is approved by the voters of the State of California.and thereafter subjected

to a legal challenge which attempts to limit the scope or application ofthis Act in any way, or

alleges this Act violates any local, state, or federal law in whole or in part, and both the Governor

and Attorney General refuse to defend this Act, then the following actions shall be taken:

(a) Notwithstanding anything to the contrary contained in Chapter 6 of Part 2 of Division

3 of Title 2 of the Government Code or any other law, the Attorney General shall appoint

independent counsel to f~ithfully and vigorously defend this Act on behalf of the State of

California.

(b) Before appointing or thereafter substituting independent counsel, the Attorney

General shall exercise due diligence in determining the qualifications of independent coLmscl and

shall obtain written affinnation from independent counsel that independent counsel will

faithfully and vigorously defend this Act. The written affinnation shall be made publicly

. available upon request.

( c) In order to support the defense of this Act in instances where the Governor and

Attorney General fail to do so despite the will of the voters, a continuous appropriation is hereby

made from the General Fund to the Controller, without regard to fiscal years, in an amount

necessary to eover the costs of retaining independent counsel to faithfully and vigorously defend

this Act on behalf of the State of California.

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Section 4. Liberal Construction.

This Act shall be liberally construed in order to effectuate its purposes.

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